FICA

Front

What is FICA?

Back

FICA stands for the Federal Insurance Contributions Act, which is a U.S. law that mandates a payroll tax to fund Social Security and Medicare.

Front

What percentage of gross pay is deducted for Social Security?

Back

6.2% of gross pay is deducted for Social Security.

Front

What percentage of gross pay is deducted for Medicare?

Back

1.45% of gross pay is deducted for Medicare.

Front

If Randall has a weekly paycheck of $355.25, how much Social Security would be withheld?

Back

$22.03 is withheld for Social Security from Randall's paycheck.

Front

If Randall has a weekly paycheck of $355.25, how much Medicare would be withheld?

Back

$5.15 is withheld for Medicare from Randall's paycheck.

Front

What is the total FICA tax rate for employees?

Back

The total FICA tax rate for employees is 7.65%, which includes 6.2% for Social Security and 1.45% for Medicare.

Front

What is the purpose of Social Security?

Back

Social Security provides financial assistance to retirees, disabled individuals, and survivors of deceased workers.

Front

What is the purpose of Medicare?

Back

Medicare provides health insurance for individuals aged 65 and older, as well as certain younger individuals with disabilities.

Front

How is the Social Security tax calculated?

Back

The Social Security tax is calculated by multiplying the gross pay by 6.2%.

Front

How is the Medicare tax calculated?

Back

The Medicare tax is calculated by multiplying the gross pay by 1.45%.